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Non-Traditional Banking - Credit Unions, Money Markets

The Pros and Cons of Non-Bank Banking

Last Updated: April 12, 2016

Banks aren’t the only ones in the “banking” game. Besides using one of the big-box banks, you can choose to park your money at a credit union, money market mutual fund, or a cash management account. But is it worth the switch? You decide.

Credit Unions

If you’re less-than-thrilled with your bank’s checking and savings options, consider the alternatives, which is not to say consider another bank. Credit unions not only offer more attractive checking and savings accounts than your bank. They also tend to be more customer (or in this case, member) friendly.

Pros

Cons

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Money Market Mutual Funds

If you’re considering, or already have, a money market deposit account with your bank, you may want to opt for a money market mutual fund instead, offered by mutual fund companies.

Pros

Cons

Cash Management Accounts

If you have a nice chunk of money to invest but aren’t ready to tie it up in a long-term, difficult-to-liquidate investment, consider a cash management account through a brokerage firm. This allows you to combine the best of banking and investing options.

Pros

Cons

If the change you’re ready for isn’t quite as drastic as all that, consider mobile banking or online-only banking via sites like Ally and iGOBanking.

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